South Korea Rejects Trump’s $350 Billion Upfront Payment Demand, Citing Economic Risks

SEOUL, Sept 27, 2025 — The South Korean government has stated it cannot comply with U.S. President Donald Trump’s demand for a $350 billion upfront payment as part of a tariff reduction deal, warning that such an outlay could endanger the country’s economy.

National Security Adviser Wi Sung-lac said in an interview with Channel A News that the figure was “objectively and realistically beyond what South Korea can handle,” stressing that the country is not in a position to pay the sum in cash.

In July, the two allies reached a preliminary agreement to lower U.S. tariffs on South Korean goods from 25% to 15%. At the time, Seoul pledged to channel $350 billion into U.S. projects through loans, guarantees, and equity investments. However, Trump claimed last week that South Korea would provide the full amount “upfront.”

President Lee Jae Myung also cautioned in a recent Reuters interview that without safeguards such as a currency swap, South Korea’s foreign reserves of $410 billion would not be sufficient to prevent a financial crisis if the country were forced into such a massive cash outlay.

Negotiations have stalled as Washington has sought control over the pledged funds, while Seoul insists on alternative arrangements. According to Wi, South Korea is aiming to finalize an agreement during the Asia-Pacific Economic Cooperation (APEC) summit hosted in Seoul next month, which Trump is expected to attend.

Source: Based on reporting from Reuters and Channel A News